For the past 3 quarters I've bought shares in Research in Motion a day or two before they announce their earnings. The previous 3 times this has proved a very profitable strategy as RIM has met or exceeded expectations and increased guidance going forward.
Yesterday I did the same. I basically emptied out the investment account and poured everything into Research in Motion at $101.50 on the Toronto Stock Exchange. Before I made the purchase though I got the feeling that maybe I was making a mistake. Maybe the pattern that I have been taking advantage of the previous 3 quarters is gonna reverse and fuck me over.
Research in Motion announce their numbers after the bell today, so if they miss, in my opinion, the stock will open at least $5-$10 below today's close depending on forward looking guidance. I dont necessarily think they will miss expectations for this quarter but I think the possibility of a sell-off is real even if they hit their numbers but dont provide a large ramp up in expectations going forward.
However, the upside potential, I'm thinking, is 10%-20% within a few days if RIM hits or beats their numbers and increases guidance, so.... I'm all in.